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Bexar County residents may decide on Spurs arena venue tax in Nov. 4 election

Spurs Arena located in the center of artist rendering of Project Marvel, a proposed sports entertainment district downtown
Courtesy image
/
City of San Antonio
Project Marvel

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Bexar County commissioners on Tuesday voted to move forward to place a venue tax on the Nov. 4 ballot that, if passed, would support a Spurs move downtown from the Frost Bank Center.

The venue tax is also called a "tourist tax" because it's composed of a 2% tax on a car rental and 5% on a hotel room rental. No county property taxes would be affected by the Spurs relocation.

Precinct 3 Republican County Commissioner Grant Moody was the sole no vote among the commissioners because of a small hike associated with the venue tax.

The county would spend around $311 million of the venue tax revenue on a new downtown arena, and another $194 million would be spent for improvements on the Frost Bank Center and stock show and rodeo grounds to boost revenue from those facilities after the Spurs leave.

Spurs Chairman Peter J. Holt told commissioners the team will ante up half-a-billion dollars toward the arena. Another half-a-billion dollars from the Spurs would be applied to surrounding economic development around a new downtown arena.

"Under our proposed structure, the Spurs will commit close to half the funds. We're the 27th smallest market in the NBA. This commitment shows our belief in the city, the county, and having a fruitful partnership that benefits all."

Holt said 14 of the smallest NBA teams play in arenas 70 to 95% publicly financed, noting the Spurs were dunking more cash down on their proposed arena.

While property taxes are not affected, some opponents were against any tax dollars being applied to a new Spurs arena. COPS Metro Alliance leader Mike Phillips urged commissioners to not move forward on the arena project.

He added: "There is no actual cost benefit for this project. No economic analysis. No real economic analysis. This is a blank check to billionaires with our tax money."

Resident Basseema Abouassaad urged commissioners to not move forward on the venue tax vote, saying studies show sports arenas do little to boost local economies. She pointed to a lack of promised economic development around the current Frost Bank Center.

"Not even Peter Holt can deny the failure of the Frost Bank Center, so don't make that mistake again," she said.

Other residents opposed the Spurs move because they claimed it will lead to the gentrification of neighborhoods and displacement of existing residents.

The county has shown no interest outside of the new downtown arena, leaving the rest of the proposed multibillion dollar sports and entertainment district — dubbed Project Marvel — between the city and Spurs.

County Judge Peter Sakai said he believes the Spurs relocation will come with economic benefits for the whole community. He said East Side economic development remains a top priority for the county, especially in light of past efforts which have fallen short.

The Texas Attorney General's Office has to review the venue tax proposal before it can be placed on the ballot.

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